) posted fourth quarter fiscal 2012 earnings of $1.66, which beat
the Zacks Consensus Estimate of $1.63 per share by 1.8%. The
results were ahead of management's expectation of $1.60-$1.62 per
share. However, earnings declined 8.3% from the prior-year
quarter earnings of $1.81 per share.
Excluding an extra week in fiscal 2012, earnings declined
11.6% from the prior-year quarter to $1.60 per share in the
quarter due to loss of sales during the holiday season.
Though the company's January sales were impressive as it was
able to clear out its seasonal merchandise last month, it could
not generate sufficient sales during the holiday season, as
expected by the company. Kohl's performance during the holiday
season was impacted by unfavorable weather conditions and lower
consumer confidence, which forced Kohl's to give
more-than-expected discounts to its customers.
This was reflected in December comparable-store sales, which
were lower than the company's expectations. Notably, the
company's November sales were also below expectations.
Sales and Margins
Net sales increased 5.4% to $6.34 billion, which includes the
addition of one week in fiscal 2012. The company results beat the
Zacks Consensus Estimate of $6.33 billion, but it lagged the
company's expectation of an increase in the range of 7% to
Excluding the addition of extra week in fiscal 2012, net sales
climbed 2.5% from the prior-year quarter to $6.17 billion in the
quarter driven by increase in comparable store sales. Kohl's
comparable store sales increased 1.9% from the prior-year
quarter, way behind the guidance of an increase in the range of
3% to 4%. Sales picked up from the prior-year quarter, owing to
an improvement in inventory levels.
Gross margin, including extra week, declined 290 basis points
to 33.3% due to increased cost of merchandise. Operating margin
also contracted 260 basis points to 13.4%, due to increase in
selling, general and administrative expenses and depreciation
Fiscal 2012 Results
Kohl's delivered earnings of $4.17 per share in fiscal 2012,
which declined 3.0% from the prior-year earnings of $4.30 per
share. The results however exceeded the Zacks Consensus Estimate
of $4.14 per share and the company guided range of $4.11 and
Net sales increased 2.5% from the prior-year to $19.28
billion, driven by increase in comparable store sales. Sales beat
the Zacks Consensus Estimate of $19.25 billion.
Excluding one extra week, sales increased 1.6% to $19.11
billion, driven by 0.3% increase in comparable store sales.
Earnings declined 4.4% to $4.11 per share.
Kohl's ended the quarter with 1,146 stores in 49 states
compared with 1,127 stores a year ago. The company did not open
or close any store in the quarter. During the year, Kohl's opened
21 new stores, including 1 relocated store, closed 1 store and
completed 50 remodels, as of Feb 2, 2013.
Other Financial Details
Kohl's board declared a 9% hike in dividend and will now pay
its shareholders a dividend of 35 cents over its previous
dividend. The new dividend will be paid on Mar 27, 2013 to
shareholders of record as of Mar 13.
For fiscal 2013, Kohl's expects earnings in the range of $4.15
to $4.45 based on the expectation of total sales and comparable
store sales increases of 0% to 2%.
For first quarter fiscal 2013, Kohl's expects earnings in the
range of 55 to 63 cents per share, sales to increase in the range
of 0.5%-2.5% and comparable store sales to increase in the range
Kohl's now has a Zacks Rank #5 (Strong Sell). Other retail and
wholesale stocks that warrant a look include
Green Mountain Coffee Roasters, Inc
The TJX Companies Inc
Natural Grocers by Vitamin Cotta
). Green Mountain carries a Zacks Rank #1 (Strong Buy), while TJX
and Natural Grocers hold a Zacks Rank #2 (Buy).
GREEN MTN COFFE (GMCR): Free Stock Analysis
KOHLS CORP (KSS): Free Stock Analysis Report
NATURAL GROCERS (NGVC): Free Stock Analysis
TJX COS INC NEW (TJX): Free Stock Analysis
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